The loan will also cover a portion of the expenditure for erection of shunt reactors at Rabai as well as expansion of a 19 km 220 kV double-circuit power line connecting the Rabai and Embakasi substations.

As demand for power in the country rises, the completion of the transmission line is likely to improve the transfer capacity to roughly 330 megawatts (MW) with the probability of an increase of up to 950 MW. To assist constituencies that are not totally covered by the national grid with access to power, the government also intends to build 33 new diesel power plants.

Plans are also in progress to build other electricity plants that are either powered by solar or wind renewable energy. Nearly 24 constituencies have been selected as areas where the stations will be established, as per a draft rural electrification master proposal.

The Kenyan government has tendered for eight of these power plants, according to the proposal being drafted by MVV Decon, a German consulting firm.

The plan states “generation mix of decentralized rural schemes will in the next five years supply an additional peak demand of 41 megawatts including electricity generated by solar and wind energies.”

The government also proposes to expand a number of power grids in the remaining 177 constituencies, a procedure estimated to cost KES120 million over the next five years. It is likely that when this is executed, nearly 902,000 Kenyans in the rural parts of the country will have access to power.

The master proposal outlines that in the next decade, the administration will offer power access to nearly one million homes at a cost of KES112 billion. In 2009, the administration anticipates to link nearly 65,000 new customers to the national grid, an investment that involves KES16 billion.